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#Best flexi access drawdown providers how to#

If you only take your tax-free lump sum, you will retain the standard annual allowance for pension contributions (currently 100% of your UK relevant earnings subject to a maximum of £60,000 per year). This means you can only contribute the lower of £10,000 or 100% of your income a year to your fund. Once you start taking taxable income you will be subject to the Money Purchase Annual Allowance (MPAA).

#Best flexi access drawdown providers how to#

The fund value can rise and fall, with no guarantee of future performance. Aon has chosen to introduce Legal & General as their chosen guaranteed income provider, who can also help customers access the best rates from the market as Aon’s introducer. At Nest we don’t offer flexi access drawdown, but you have the option to transfer your pension pot to a drawdown provider. Who are the best drawdown providers How to choose the right one Which provider is the cheapest What to do if your current provider doesn’t offer drawdown Get matched with a pension drawdown specialist FAQs Which pension providers offer drawdown The pension drawdown market is enormous, with dozens of options to consider.

Since your pension remains invested, it also remains exposed to market risks.

By withdrawing whatever income you choose, you run the risk of running out of money earlier than if the money were in a stable fund such as an annuity.

If you die before you have used up your pension, you can nominate one or more beneficiaries who will inherit your remaining funds.

The flexibility of taking only what you need means you control your income according to your plans and wishes.

By keeping your pot invested and withdrawing only what you need, you will allow your pension to keep growing - unlike an annuity which provides a fixed income.